IT's Value Volume Now

Workforce lines are being redrawn, but there is light at the end of the AI tunnel for Indian IT

- PAYAL GANGULY & NAINI THAKER

Tata Consultancy Services (TCS) has acquired a new superscript, choosing tcsᴬᴵ as the epithet for its journey of transformation to become the “world’s largest AI-led technology services company”.

On October 9, during its earnings conference call with analysts for the quarter and half year ended September 30, India’s largest software company listed “five pillars” on which its investments are currently focussed. One of them is tcsᴬᴵ. Of the other four, three have AI, or artificial intelligence, in their name. These are: “redefining all services in a ‘human + AI services model’”, “making AI real for clients”, and “AI ecosystem play”.

The fifth, which does not have AI in its name, is getting as much attention, if not more, because of the current context. This pillar is called “building a future-ready talent model”. Elaborating on this, K Krithivasan, CEO of TCS, said during the call: “We are investing in future-ready skills, embracing new ways of working, and recruiting top talent locally in the markets we operate in.”

Echoes of this statement can be heard in the debate about AI’s impact on manpower, especially in technology industries. “The Indian IT sector is facing a gradual workforce shift due to AI, not sudden layoffs, as companies balance efficiency with reskilling. IT companies have not yet made AI-related mass layoffs but have slowed hiring and made selective cuts based on re-skillability,” says Sangeeta Gupta, senior vice president and chief strategy officer at Nasscom, the industry body.

MASS HIRING TO SPECIALISTS

In July, TCS said it would lay off about 2 percent of its employees, or 12,261 people, most of them at the middle or senior levels. So far it has laid off 1 percent.